Climate Challenge Participation Letter
DOE's Energy Partnerships for a Strong Economy
CLIMATE CHALLENGE PARTICIPATION ACCORD
BETWEEN
TEXAS UTILITIES ELECTRIC COMPANY
AND THE
U. S. DEPARTMENT OF ENERGY
This Participation Accord describes the commitments that Texas Utilities
Electric Company (TU Electric or the Company) and the U.S. Department of Energy
(DOE) have made to participate in the Climate Challenge Program in pursuit of
the President's goals for reducing greenhouse gas emissions. The Climate
Challenge Program is a joint, voluntary effort of DOE and the electric utility
industry to reduce, avoid or sequester greenhouse gas emissions. The framework
of the Climate Challenge Program was established in the Climate Challenge
Program Memorandum of Understanding and exhibits thereto dated April 20, 1994
(the Climate Challenge Program MOU) (see Attachment A to this Participation
Accord).
I. TU Electric Commitments
A.
Consistent with paragraphs II.B.1.a and II.B.1.f of the Climate Challenge
Program MOU, TU Electric will participate in two Industry Initiative Programs
(detailed descriptions of these programs are provided in Exhibit A of the MOU),
and has undertaken or will undertake the following specific projects to reduce,
avoid, or sequester greenhouse gas emissions.
1.
TU Electric joined the National Earth Comfort Program on October 4,
1994. The specifics of this Industry Initiative Program are described in
Exhibit A of the MOU, which is attached as part of this accord. TU Electric has
made a commitment to support this program financially for six years at an
initial annual level of funding of $50,000. In addition to financial support,
the Company is participating on industry leadership committees responsible for
directing or advising the Geothermal Heat Pump Consortium.
Estimates of the annual quantities of greenhouse gases reduced, avoided, or
sequestered by the Company as a result of this initiative are yet to be
determined.
2.
TU Electric joined the Utility Forest Carbon Management Program in
August 1994. The specifics of this Industry Initiative Program are described
in Exhibit A of the MOU, which is attached as part of this accord. TU Electric
has made a commitment to support this program financially at a level of $5,000
per year, and is participating on the industry committee responsible for
directing the efforts of this program.
Estimates of the annual quantities of greenhouse gases reduced, avoided, or
sequestered by the Company as a result of this initiative are yet to be
determined.
3.
Fossil-fueled generating station heat rate improvement projects.
Since January 1, 1991, the Company has implemented or will implement over
thirty major projects to improve the heat rate at 14 of its fossil-fueled
generating plants, including DeCordova, Sandow, Big Brown, Lake Hubbard,
Handley, Graham, North Lake, Mountain Creek, Eagle Mountain, Permian Basin,
Monticello, Martin Lake, Tradinghouse and Valley steam electric stations. Each
of these projects will reduce annual greenhouse gas emissions by a minimum of
1,000 tons of CO2.
The Company estimates that this effort, when fully implemented, will result in
the annual reduction of tons of CO2 as listed in Table 1.
4.
Demand-side management programs. The Company has developed 8 DSM
solicitation projects and 19 DSM rebate programs and submitted these programs
to the Texas Public Utility Commission for approval on October 25, 1994. These
projects include solicitations from CES/Way International, Inc., Encon Systems,
Inc., Entergy Systems and Service, Inc., Highland Energy Group, Inc.,
MC2 Energy Management, Princeton Development Corporation, TAMAL
Energy Services Corporation and the Tarrant County Water District. Examples of
the rebate programs include several residential "energy-wise" or "e-Wise"
programs, such as e-Wise New Single Family home program, e-Wise New Multifamily
home program, e-Wise Residential Lighting program, e-Wise Thermal Cool Storage,
and 6 e-Wise Commercial and Industrial programs (chillers, HVAC, electrical,
lighting, thermal insulation, and motors).
Pending future Texas Public Utility Commission approval, TU Electric will
implement these programs which collectively would total over 620 MW of avoided
future fossil-fueled electric generation.
The Company estimates that these efforts, if fully implemented, will result in
the annual reduction of tons of CO2 as listed in Table 1.
5.
Renewable energy development projects. Since January 1, 1991, the
Company has put in place three wind turbines and several photovoltaic
applications. In addition, the Company will develop a 40-MW wind-energy
project in West Texas, pending approval by the Public Utility Commission of
Texas. The Company's current Integrated Resource Plan also calls for the
installation of an additional 100 MW of wind-energy by the year 2000.
The Company estimates that its renewable energy development projects, if
approved by the Utility Commission, will result in the annual reduction of the
tons of CO2 as listed in Table 1.
6.
Operation of nuclear generation units. Unit 2 of TU Electric's
nuclear generating station, the Comanche Peak Steam Electric Station, began
commercial operation after January 1, 1991. TU Electric will continue to
operate this 1,150 MW unit as baseload capacity (as well as the 1,150 MW
Comanche Peak Unit 1 which completed its first full calendar year of commercial
operation in 1991) on the TU Electric system, resulting in the generation of
virtually no greenhouse gases. In addition, since January 1991, the Company
has improved the availability of the two Comanche Peak units, chiefly by
extension of refueling schedules and shortening of the refueling outage
durations. These actions avoid generation of greenhouse gases.
The Company estimates that its nuclear program will result in an annual
reduction of tons of CO2 as listed in Table 1.
7.
Natural gas-fueled electric generation projects. TU Electric will
add natural gas-fueled combined-cycle combustion turbines as new generating
units rather than coal-fueled units that had previously been planned to meet
energy needs through the year 2000. With the exception of the Comanche Peak
nuclear units and three wind turbines, all new generation capacity on the TU
System over the past several years has been fueled by natural gas. In
addition, most of the power purchased to meet load requirements over the last
few years has been from natural gas-fired cogeneration or other gas-fired
facilities.
Installation of the new gas-fueled generating units included in the Company's
Integrated Resource Plan requires approval of the Texas Public Utility
Commission. Estimates of the annual quantities of greenhouse gases avoided as
a result of the Company's plans are listed in Table 1.
8.
Recycling projects and activities. The Company plans to increase its
recycling activities, including the sale of combustion byproducts, in future
years. In most cases the use of recycled materials instead of virgin materials
in production processes, such as the use of coal ash in the manufacture of
cement, requires less energy which will result in the avoidance of greenhouse
gas emissions.
Estimates of the annual quantities of greenhouse gases reduced, avoided, or
sequestered as a result of recycling projects and activities are not yet
available.
9.
Increase reforestation in land reclamation program. The Company will
double the number of acres planted in trees in its mine reclamation programs
above the number of acres historically planted beginning in 1995. The
resulting increase in the number of trees planted will depend upon the species
selected and local site characteristics. Historically, the Company has planted
around 500,000 trees annually in its mine reclamation program, and this
commitment will increase the number of trees planted. Carbon will be
sequestered over the life of these forest stands. Additionally, the Company
will increase carbon sequestration in its premining vegetation removal program
by increasing the use of this vegetation for wood pulp, mulch, lumber products,
and other uses.
The Company estimates that its efforts in this area will result in an annual
reduction of tons of CO2 as listed in Table 1.
10.
Texas Reforestation Foundation program. The Company has signed an
agreement with the Texas Reforestation Foundation to fund the reforestation of
up to 300 acres per years of small, previously logged acreages in the Company's
service territory. This carbon sequestering activity begins in early 1995 and
is currently committed through the year 2000.
The Company estimates that tons of CO2 will be sequestered on an annual basis
as a consequence of this program as listed in Table 1.
11.
Vehicle use activities. The Company has reduced the number of
vehicle miles driven to accomplish certain work efforts, such as meter reading,
and maintenance and repair of transmission and distribution facilities. The
Company will continue to look for opportunities to improve worker efficiency,
such as consolidating or otherwise modifying its operations to reduce the
travel times and miles driven by its work crews and other employees. These
activities also reduce vehicle emissions, including emissions of greenhouse
gases.
Estimates of the annual quantities of greenhouse gases reduced, avoided, or
sequestered as a result of these activities are not yet available.
B.
TU Electric will report annually on activities and achievements under the
Climate Challenge Program. Results achieved during each year shall be reported
in a clear and understandable manner that is consistent with the guidelines
adopted pursuant to subsection 1605(b) Energy Policy Act and with Exhibit B,
Supplemental Guidance on Commitment Definition and Reporting, of the
Climate Challenge Program MOU. The first such report may include a description
of the activities and achievements of TU Electric prior to its becoming a
participant in the Program, expressed on an annual basis to the extent
possible.
C.
TU Electric will confer with DOE on or before February 15, 1997, to evaluate
jointly the progress of the Company in achieving its Climate Challenge Program
goals and to discuss possible adjustments to its voluntary commitments.
D.
TU Electric has received written confirmation that The Nature Conservancy
has agreed to serve in an advisory capacity on the Company's Climate Challenge
Program (see Attachment B). TU Electric will meet with The Nature Conservancy
on an annual basis to review, assess, and receive input on the Company's
activities and achievements under the Climate Challenge Program.
E.
The Climate Challenge Program representative for TU Electric will be:
Mr. Richard L. White
Vice President, Environmental Services
Texas Utilities Electric Company
1601 Bryan Street
Dallas, Texas 75201
TU Electric agrees to notify DOE prior to or, in any event, no later than 30
days after any change in the contact.
II. DOE Commitments
A.
DOE's commitments to TU Electric are those set out in section III of the
Climate Challenge Program MOU, which are hereby incorporated in this
Participation Accord by reference.
B.
will consider TU Electric requests to intervene in regulatory proceedings
of federal, state and local commissions and boards on issues pertinent to the
Climate Challenge Program. Before DOE intervenes in regulatory and other
proceedings pertaining to TU Electric for purposes of addressing Climate
Challenge Program issues, it will provide notice to TU Electric.
C.
DOE will provide an annual report to TU Electric describing the actions that
it has taken to fulfill its commitments under section III and Exhibit C of the
Climate Challenge Program MOU and the results of those actions.
D.
The Climate Challenge Program representative for DOE, who will serve as
liaison to TU Electric, will be:
Dr. Allan Hoffman
U.S. Department of Energy
Room 6B-128 (EE-10)
1000 Independence Avenue SW
Washington, D.C. 20585
Phone: (202) 586-1786
DOE agrees to notify TU Electric prior to or, in any event, no later than 30
days after any change in liaison responsibilities or personnel.
III. General Provisions
A.
Use of DOE-developed materials by TU Electric will be governed by the
provisions of section IV of the Climate Challenge MOU, which are hereby
incorporated in this Participation Accord by reference.
B.
In addition to the foregoing provisions, DOE and TU Electric agree to act in
accordance with the principles set out in section I of the Climate Challenge
Program MOU and the general provisions set out in subsections V.A-V.D, V.F and
V.G of the Climate Challenge Program MOU, which are hereby incorporated by
reference.
C.
Either party may withdraw from this Participation Accord or any of its
activities under the Climate Challenge Program without penalty and without
being subject to remedies at law or equity.
(Original signed by)
______________________________
Texas Utilities Electric Company
(Original signed by)
______________________________
Secretary of Energy
U.S. Department of Energy
Attachments:
Table 1 -- Estimates of Greenhouse Gases Reduced, Avoided, or Sequestered
Attachment A -- Climate Challenge Program MOU and exhibits
Attachment B -- Letter from The Nature Conservancy
TABLE 1
ESTIMATES OF GREENHOUSE GASES REDUCED,
AVOIDED, OR SEQUESTERED
Activity Tons of Greenhouse Gases Reduced,
Avoided or Sequestered
(Quantities expressed as tons of
CO2 equivalent in the year 2000)
___________________________________________________________________________________
1. National Earth Comfort Program *
2. Utility Forest Carbon Management Program *
3. Fossil-fueled generating station heat 431,745
rate improvement projects
4. Demand-side management programs 1,148,011
5. Renewable energy development projects 223,440
6. Operation of nuclear generation units 14,414,949
7. Natural gas-fueled electric generation 2,296,496
projects
8. Recycling projects and activities *
9. Increase reforestation in land 29,182
reclamation program
10. Texas Reforestation Foundation program 18,277
11. Vehicle use activities *
____________
TOTAL 18,562,100
* To be determined
Please send comments to:
Lawrence.Mansueti@hq.doe.gov
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